A $120,000 Mortgage Is Amortized Over 25 Years

A $120,000 mortgage is amortized over 25 years. Interest is 7.5% compounded semi-annually for a 5-year term with monthly payments. At the end of the fifth year, the mortgage is renewed for a four-year term at a rate of 7.0% compounded semi-annually. Determine the monthly payments throughout the renewal four year term.

A) $898.65
B) $863.24
C) $845.66
D) $822.44
E) $808.10

Correct Answer:

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